Germany - Report on minimum wage compliance - January 31, 2018

The Institute of Economic and Social Research (WSI) at the Hans Böckler Foundation published a report on the compliance with the statutory minimum wage. The authors reveal that around 2.7 million workers received less than the minimum wage in 2016 even though they were entitled to it. This comes up to 9,8% of people who are entitled to receive it after the minimum wage law that came into force in 2015. The highest rates of avoidance by employers are found in private households (42,6%), hotel and catering industry (38,0%) and retail (19,5%). Companies without workers' councils and collective labour agreements more frequently undermined the minimum wage. In such companies, 18.6% of employees did not receive the legally prescribed minimum wage. By comparison, 3.2% of companies with workers' councils and collective labour agreements circumvented the payment of the minimum wage in 2016.

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